JEFFERSON CITY, Mo. (AP) — Lawmakers across the U.S. will be debating whether to adopt new federal tax breaks for tips, overtime and business expenses. The Trump administration is urging states to follow its lead by applying the federal tax cuts to state income taxes. But that decision varies by state. In some places, the tax breaks automatically apply unless legislatures opt out. In others, they won’t occur unless legislatures opt in. States embracing all of President Donald Trump’s tax cuts could offer significant savings to taxpayers but may also face financial strain. So far, only a few states have voted on these tax breaks, with Michigan being the first to opt in for tips and overtime.
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